National nonresidential construction spending decreased 0.1% in May, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion.
Spending declined on a monthly basis in 9 of the 16 nonresidential subcategories. Private nonresidential spending decreased 0.3%, while public nonresidential construction spending was up 0.4% in May.
“Nonresidential construction spending has fallen for two consecutive months yet remains just 0.2% below the all-time high achieved in March 2024,” said ABC Chief Economist Anirban Basu. “Much of that progress is attributable to ongoing infrastructure investments, which spurred a sizable 0.4% increase in publicly funded nonresidential spending in May.
“Private nonresidential spending has lagged and, after falling 0.3% in May, is up just 4.1% year over year,” said Basu. “That weakness can be tied to interest rate-sensitive segments like office and commercial, both of which have also been hampered by altered demand dynamics in the wake of the pandemic. Despite this recent private sector moderation, contractors remain confident about the next few quarters, with a majority expecting their sales to increase over the next six months, according to ABC’s Construction Confidence Index.”
Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.
Related Stories
K-12 Schools | Mar 1, 2015
Are energy management systems too complex for school facility staffs?
When school districts demand the latest and greatest, they need to think about how those choices will impact the district’s facilities employees.
Industrial Facilities | Feb 27, 2015
Massive windmill will double as mixed-use entertainment tower in Rotterdam
The 571-foot structure will house apartments, a hotel, restaurants, even a roller coaster.
Office Buildings | Feb 26, 2015
Using active design techniques to strengthen the corporate workplace and enhance employee wellness
The new Lentz Public Health Center in Nashville, Tenn., serves as a model of how those progressive and healthy changes can be made.
K-12 Schools | Feb 26, 2015
Should your next school project include a safe room?
Many school districts continue to resist mandating the inclusion of safe rooms or storm shelters in new and existing buildings. But that may be changing.
K-12 Schools | Feb 26, 2015
Construction funding still scarce for many school districts
Many districts are struggling to have new construction and renovation keep pace with student population growth.
K-12 Schools | Feb 26, 2015
D.C.'s Dunbar High School is world's highest-scoring LEED school, earns 91% of base credits
The 280,000-sf school achieved 91 points, out of 100 base points possible for LEED, making it the highest-scoring school in the world certified under USGBC’s LEED for Schools-New Construction system.
K-12 Schools | Feb 25, 2015
Polish architect designs modular ‘kids city’ kindergarten using shipping container frames
Forget the retrofit of a shipping container into a building for one moment. Designboom showcases the plans of Polish architect Adam Wiercinski to use just the recycled frames of containers to construct a “kids city.”
Building Team | Feb 24, 2015
Call for entries: 2015 Giants 300 survey
The annual Giants 300 Report ranks the top AEC firms in commercial construction, by revenue.
Industrial Facilities | Feb 24, 2015
Starchitecture meets agriculture: OMA unveils design for Kentucky community farming facility
The $460 million Food Port project will define a new model for the relationship between consumer and producer.
Contractors | Feb 24, 2015
ABC economist: Year-end construction backlog drops 1%, but still outpaces 2013
Despite a quarter-over-quarter decline, the U.S. construction backlog ended the year at 8.7 months, 4.4% higher than one year ago.
